Mr Obama invited the Prime Minister to the US during the APEC summit in the Philippines last month.

The current ambassador, former Labor leader Kim Beazley, is due to finish his five-year stint later this month.

Mr Beazley was appointed by the Rudd government, continuing the trend of Australian governments appointing former politicians to diplomatic posts.

The former Labor government also appointed former deputy prime minister Tim Fisher as ambassador to the Holy See.

The Abbott government appointed former foreign minister Alexander Downer as High Commissioner to the United Kingdom, a move that saw former South Australian premier Mike Rann shift to head Australia's mission in Italy.

Queensland senator Brett Mason was also named ambassador to the Netherlands by the Abbott government.

After finishing in Washington, Mr Beazley will become president of the Australian Institute of International Affairs.